Zoom (NASDAQ:ZOOM) shares fell 12% after the video conference company warned of slowing growth when reporting its second-quarter earnings.
Zoom’s revenue increased by 54% year-over-year in the quarter to $1.02 billion U.S. versus $991.0 million U.S. expected by analysts, according to Refinitiv data. However, in the previous quarter revenue had grown 191%. Next quarter, Zoom is guiding for 31% revenue growth.
The company’s earnings per share came in at $1.36 U.S. per share compared to $1.16 U.S. per share expected by analysts.
During the quarter, Zoom announced its intention to acquire cloud contact-center software provider Five9 for $14.7 billion U.S. in stock. The deal comes after Zoom gained millions of new users during the pandemic and companies rushed to enable online meetings via the company’s software.
With respect to next quarter’s guidance, Zoom called for $1.07 U.S. to $1.08 U.S. in earnings per share on $1.015 billion U.S. to $1.020 billion U.S. in revenue. Analysts had expected earnings per share of $1.09 U.S. and revenue of $1.01 billion U.S.
For the full fiscal year, Zoom said it sees earnings of $4.75 U.S. to $4.79 U.S. per share and $4.005 billion U.S. to $4.015 billion U.S. in revenue. The company increased its forecast for the year as COVID-19 case counts have increased and some companies delayed plans to reopen their offices.
Prior to the latest price drop, Zoom stock had been up about 3% since the start of 2021, trailing the S&P 500, which is up almost 21% year-to-date.
